New Yorkers who are facing white-collar crime allegations might not realize that the penalties for these charges can be severe with significant fines and jail time. Often, these crimes involve prominent people with recognizable names. For example, high-profile attorney Michael Avenatti has been charged with multiple white-collar offenses starting in March of 2019. These included federal charges of extortion, fraud, embezzlement and tax evasion in New York and California.
Avenatti is now facing a new string of fraud and money laundering allegations. The recently released documents were filed in California. According to prosecutors, the lawyer hid $1 million from his wife and creditors after being paid by a client who reached a settlement.
Avenatti reportedly owed his ex-wife approximately $2.5 million for spousal and child support. In addition, he owed $5 million to his former law partner and $2.2 million to a California client. His recent arrest was for violating bail. The bail required that he adhere to the law at a federal, state and local level. Concealing that million dollars violated the conditions of his bail.
In New York, a judge denied Avenatti’s request to have the charges dismissed. Avenatti claimed that they were political due to his representation of an adult-film actress who said she had an affair with President Trump. The judge rejected the argument.
For someone dealing with white-collar crimes — whether they be related to fraud, insider trading, corruption, extortion or any other crime in this category — a legal defense might be key to a satisfactory resolution. A law firm with experience assisting people who are charged with white-collar crimes may be able to help.